May 11 (Renewables Now) - US biofuels firm Gevo Inc (NASDAQ:GEVO) on Thursday reported a net loss of USD 2.5 million (EUR 2.1m) for the first quarter of 2018, a reduction from a net loss of USD 5.9 million a year earlier.
The company said that its loss from operations narrowed to USD 5 million from USD 7.2 million, helped by its efforts to reduce cash burn. It had USD 7 million in cash and cash equivalents at the end of the quarter.
Gevo generated revenue of USD 8.2 million, up from USD 5.6 million in the same period last year, almost entirely form ethanol sales and related products at its Luverne facility.
"We see a pathway to making Gevo profitable by addressing low carbon fuels. We intend to do it first with ethanol by improving our production facility in Luverne which will also benefit isobutanol production. We can see a path to profitability without building a large isobutanol and hydrocarbons plant. We have not abandoned our long-term goal of building large scale plants, but they take time to build out and generate cash," commented chief executive Patrick Gruber. He added that more detailed plan will be provided in the near future.
At its annual meeting on May 30, Gevo will ask stockholders to approve a reverse stock split, so that the company can maintain its listing on the NASDAQ Capital Market. It said that a delisting would give holders of its 12% convertible senior secured notes due 2020 the right to require Gevo to repurchase the notes, which would likely render the company insolvent.
(USD 1 = EUR 0.836)